Clinical Decision Support Systems Market

[199 Pages Report] The clinical decision support systems market is projected to reach $1,752.0 million by 2023 from $901.0 Million in 2017, at a CAGR of 11.8%. Factors such as government support & initiatives, growing incidence of medication errors, rising prominence & usage of big data and mhealth tools, high returns on investment for CDSS solutions, and growing adoption of Cloud Computing in healthcare are driving the growth of this market.

Market Dynamics

Partnerships between medical research groups and clinical decision support companies

In 2017, global digital health funding increased by 42% to USD 7.2 billion, of which CDSS received USD 514 million. Such funding helps CDSS companies and medical research groups to invest and partner to provide new innovative solutions. Such partnerships help develop CDSS tools enabling healthcare providers and their patients to make the best decision based on specific circumstances. For instance, in September 2017, Mayo Clinic (US) partnered with the National Decision Support Company (NDSC) (US) to develop a CDS tool “CareSelect Lab” comprising recommendations for lab test ordering. This tool is an extension of NDSC’s capabilities to deliver EHR-integrated guidelines and brings together the industry standard for EHR-delivered guidance with the more than 1,500 best-practice care models—authored, curated and maintained by Mayo Clinic. In September 2017, Mayo Clinic also partnered with Epic Systems (US) to offer its secure, web-based symptom assessment tool “Ask Mayo Clinic” through “Epic MyChart,” assisting patients in managing their own care. Such partnerships offer potential growth opportunities for market players, which is also likely to drive the adoption of CDSS solutions.

Reluctance to adopt mobile CDSS

Stakeholder engagement is the key to success of healthcare IT solutions such as mobile CDSS. If healthcare providers are forced to adopt mobile CDSS by external mandates in the absence of common goals, they may actively resist the technology, misuse it, or otherwise not utilize it in the manner intended by its designers. Thus, the gains realized from technology use are likely to be minimal. The reluctance of providers in terms of adopting mobile CDSS may be due to factors such as confidentiality and safety issues, concerns over reliability and quality of patient data, costs and time constraints, lack of literacy, and legal uncertainties, among others. Cooperation of providers is very important for the implementation of mobile CDSS.

According to a survey conducted in May 2017 by Spok Holdings, Inc., a clinical communication solution provider, 69% of hospitals view mobile strategies as a key initiative to improve clinical and operational health outcomes. However, despite this awareness, nearly 60% of clinical staff do not have mobile access to CDSS.

Providers may also be reluctant due to lack of infrastructure to support these solutions or lack of skill and training to implement the solutions. Moreover, many providers prefer a traditional approach of clinical decision making as opposed to relying on technologically advanced solutions such as mobile CDSS.

Emerging markets for healthcare IT

In Asia and Australasia, the rollout of public healthcare programs combined with growing consumer wealth is anticipated to boost healthcare spending at an average of 8.1% from 2014 to 2018 (Source: The Economist Intelligence Unit). Government initiatives for the implementation of HCIT solutions, rise in government spending on healthcare systems, and increase in the number of skilled IT experts are the major factors favoring the adoption of CDSS in the emerging markets across Asia Pacific.

Below is an indicative list of pointers that showcases the potential of the Asia Pacific CDSS market:

• The percentage of primary care physicians adopting EMR in Australia (92%) exceeded the adoption rate in the US (84%) (Source: OECD, 2015 International Profiles of Health Care Systems).
• China’s 13th Five-Year Plan (FYP), initiated in November 2015, focuses on changes in areas of healthcare services. Government healthcare spending in China increased from 15% in 1999 to 30% in 2013, and out-of-pocket spending dropped from 60% to 34%. In China, information technology is leveraged to revolutionize healthcare, drug development, and distribution. The use of mobile health technologies (mHealth) is also increasing in China to improve connectivity with rural/remote areas. Additionally, the “Big Three” Chinese internet and e-commerce companies (Baidu, Alibaba, and Tencent) are also investing in the healthcare industry (Source: China’s Healthcare Sector and U.S.- China Health Cooperation, Council on Foreign Relations).
• The Indian Government started the “Digital India” campaign in 2015 to ensure that government services are made available to citizens electronically by improving IT infrastructure and improving internet connectivity. These factors are likely to encourage the adoption of CDSS among hospitals in the country.

Growth in healthcare spending in emerging markets such as the Middle East, Africa, and Latin America is also likely to drive the adoption of healthcare IT solutions such as CDSS. Key statistics regarding increased healthcare spending in these regions are mentioned below.

• Rapid growth in healthcare spending is expected in the Middle East and Africa, with an annual average increase of 8.7% from 2014 to 2018 (Source: The Economist Intelligence Unit, May 2014). This can be attributed to population growth and efforts to increase the quality of care.
• Healthcare spending in Latin America is projected to increase at an average of 4.6% per annum from 2014 to 2018. Healthcare spending in Brazil has increased in GDP terms, which is majorly due to the rising disposable income and higher public healthcare expenditure. In 2013, Brazil’s total healthcare spending was estimated at 9.1% of the GDP (Source: WHO).

Integration of CDSS solutions within healthcare organizations

The healthcare industry is highly information-intensive, wherein patient information is generated in all departments and at all points of care within a healthcare organization. However, the usability of this information is very low if it is not integrated properly to create an exhaustive and accurate patient record. Since CDSS is used within healthcare systems, there is a greater need to integrate CDSS, in order to aid accurate decision-making by healthcare professionals at different points of care delivery.

Currently, many healthcare organizations have invested in various information management applications, such as imaging systems, email management systems, database management systems, form management systems, clinical information systems, workforce management systems, asset management systems, content management systems, revenue cycle management systems, clinical and non-clinical workflow systems, and customer relation management systems. As healthcare organizations are increasingly adopting CDSS tools, there is a greater need for integrating different information technology systems into the IT architecture of an organization for ensuring their optimal utilization. As a result, the successful integration of CDSS with other systems is a major area of focus for IT infrastructure development projects.

However, integrating a new healthcare IT system with a healthcare organization’s existing legacy information management systems is a daunting task for market players. With differences in data communication standards, a number of information systems are unable to exchange data. This is limiting the successful utilization of CDSS by healthcare organizations, thereby lowering their adoption.

Objectives of the Study:

• To define, describe, segment, and forecast the global market on the basis of type, component, delivery mode, product, model, interactivity, application, and region
• To provide detailed information regarding the major factors influencing the growth of the market (drivers, restraints, opportunities, and challenges)
• To analyze micromarkets with respect to individual growth trends, future prospects, and contributions to the overall market
• To analyze the opportunities in the market for stakeholders and provide details of the competitive landscape for market leaders
• To forecast the size of the market segments with respect to four main regions, namely, North America, Europe, Asia Pacific, and the Rest of the World
• To strategically analyze the market structure and profile the key players of global clinical decision support systems and comprehensively analyze their core competencies
• To track and analyze competitive developments such as agreements, collaborations, and partnerships; product launches, enhancements, & integrations; and acquisitions in the this market

Research Methodology:

Top-down and bottom-up approaches were used to estimate and validate the size of the global clinical decision support systems market and to estimate the size of various other dependent submarkets in the overall market.

Various secondary sources such as associations like Healthcare Information and Management Systems Society (HIMSS), American Medical Informatics Association (AMIA), Agency for Healthcare Research and Quality (AHRQ), American Association of Healthcare Administrative Management (AAHAM), Organization of Economic Co-operation and Development (OECD), WHO, Centers for Disease Control and Prevention (CDC), Institute for Health Technology Transformation (iHT2), American Medical Group Association (AMGA), International Association of Health Policy (IAHP), Institute of Population and Public Health (IPPH), Public Health Agency of Canada, European Federation for Medical Informatics (EFMI), and Australian Healthcare & Hospitals Association (AHHA), directories, industry journals, databases, and annual reports of the companies have been used to identify and collect information useful for the study of this market. Primary sources such as experts from both supply and demand sides have been interviewed to obtain and validate information as well as to assess dynamics of this market. The breakdown of profiles of primaries is shown in the figure below:

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Target Audience:

• Healthcare Institutions/Providers (Hospitals, Medical Groups, Physician Practices, Diagnostic Centers, Pharmacies, Ambulatory Centers, and Outpatient Clinics)
• Healthcare Insurance Companies/Payers
• Healthcare IT Service Providers
• Venture Capitalists
• Government Bodies
• Corporate Entities
• Accountable Care Organizations

Scope of the Report:

This research report categorizes the global clinical decision support market into the following segments:

By Component

• Hardware
• Software
• Services

By Delivery Mode

• Cloud-based
• On-premise

By Product

• Standalone CDSS
• Integrated CDSS

By Type

• Therapeutic CDSS
• Diagnostic CDSS

By Model

• Knowledge-based CDSS
• Non-Knowledge-based CDSS

By User Interactivity

• Active CDSS
• Passive CDSS

By Application

• Conventional CDSS
• Advanced CDSS

By Setting

• Inpatient Settings
• Ambulatory Care Settings

By Region

• North America
  • US
  • Canada
• Europe
  • Germany
  • UK
  • France
  • RoE
• Asia Pacific
• Rest of the World (RoW)

Available Customizations:

With the given market data, MarketsandMarkets offers customizations as per the company’s specific needs. The following customization options are available for the report:

• Portfolio Assessment

  Product Matrix, which gives a detailed comparison of the product portfolios of the top three companies in the market

• Detailed analysis and profiling of additional market players (up to 3)

The global clinical decision support systems market is projected to reach USD 1,752.0 million by 2023 from an estimated USD 1,001.9 million in 2018, growing at a CAGR of 11.8%. This growth can be attributed to factors such as government support & initiatives, growing incidence of medication errors; rising prominence & usage of big data and mhealth tools, high returns on investment for CDSS solutions, and growing adoption of cloud computing in healthcare are driving the growth of this market.

Clinical decision support systems are designed to aid clinical decision-making. These healthcare information technology (HCIT) systems provide timely and person-specific information to the healthcare providers to make the best clinical decisions based on current circumstances. These platforms ensure that healthcare professionals provide evidence-based care to their patients

The global clinical decision support systems market has been segmented, on the basis of delivery mode, into on-premise and cloud-based mode. The cloud-based segment is estimated to witness the highest CAGR during 2018–2023. The high growth can be attributed to the flexibility and scalability offered by these solutions.

By product, the global market is broadly segmented into integrated CDSS and standalone CDSS. In 2017, the integrated CDSS segment is projected accounted for the largest share of the CDSS market. The largest share of this segment can be attributed to factors such as healthcare organizations opting to integrated solutions which comprise several interconnected application programs that share a common database and user interface. These systems provide clinicians and decision-makers with a robust database to support evidence-based clinical decision-making.

By component, the market is segmented into services, software, and hardware. In 2017, the services segment accounted for the largest share of the CDSS market. The large market share of this segment can be attributed to the indispensable and recurring nature of services in supporting the installation, operation, and maintenance of clinical decision support systems.

Geographically, the North American clinical decision support systems market accounted for the largest share of the global market in 2017. The large share can be attributed to factors such as the rising demand for quality healthcare delivery, need to curb increasing healthcare expenditure, and implementation of favorable initiatives & regulations are driving the growth of the CDSS market in the US. Additionally, the rising incidence of medical errors in the US necessitate the utilization of advanced solutions such as CDSS in healthcare.

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Attempt by healthcare organizations to upgrade CDSS systems is driving the growth of this market

Conventional CDSS

Conventional CDSS is primarily used to enhance health-related decision-making & actions with pertinent, organized clinical knowledge and patient information to improve health and healthcare delivery. These systems traditionally support clinicians at the point of care to enhance decision-making and reduce medication errors. The conventional CDSS segment accounted for the largest share of the market primarily due to the fact that most of the healthcare organizations are adopting conventional decision support systems to provide guidance and reminders to caregivers at the point of care

Advanced CDSS

Advanced CDSS has a variety of applications, besides providing decision support at the point of care. These include data mining, financial decision support, health economics, providing real-time evidence, treatment planning, and protocol validation.  The advanced clinical decision support systems are often available as integrated systems, which can serve as add-ons to healthcare organizations EHR.

Critical questions the report answers:

• Where will all these developments take the industry in the mid to long term?
• What are the upcoming applications for clinical decision support systems?

Reluctance to adopt clinical decision support systems, high investments required for IT infrastructure, data security concerns, and lack of interoperability may impede the growth of this market to some extent. The maintenance and software update costs of these systems may sometimes be more than the actual price of the software. Support and maintenance services, which include software upgrades as per changing user requirements, represent a recurring expenditure that may amount to almost 30% of the total cost of ownership.

Wolters Kluwer Health (US), Hearst Health (US), and Elsevier B.V. (Netherlands) are the leading players in the clinical decision support systems market. Other prominent players include Cerner Corporation (US), McKesson Corporation (US), Epic Systems Corporation (US), MEDITECH (US), Philips Healthcare (Netherlands), International Business Machines (IBM) (US), and Allscripts Healthcare Solutions, Inc. (US).

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